Bitdeer Technologies Group

Bitdeer Technologies Group is a world-leading technology company specializing in AI and Bitcoin mining infrastructure, headquartered in Singapore. The company operates in two primary sectors: cryptocurrency mining and AI infrastructure/cloud services. Its business model is centered on providing comprehensive Bitcoin mining solutions and building AI computational infrastructure. Revenue generation is diversified across self-mining, sale of proprietary mining rigs and accessories, cloud hash rate services, and various hosting solutions (General Hosting, Membership Hosting, and Cloud Hosting), with a rapidly growing AI infrastructure and AI cloud business. The company manages complex processes including equipment design, procurement, manufacturing, logistics, datacenter design and construction, equipment management, and daily operations. Bitdeer leverages its proprietary ASIC technology for its SEALMINER mining rigs to support self-mining and external sales, aiming for vertical integration, lower cost structures, and enhanced capital efficiency. The AI infrastructure and AI cloud segment provides advanced AI cloud capabilities, high-performance computing (HPC) services, and colocation services, utilizing NVIDIA DGX SuperPOD H100, H200, B200, and GB200 NVL72 systems.

The company's core business model involves generating revenue from five primary lines. Self-mining involves mining cryptocurrencies, predominantly Bitcoin, for its own account, allowing it to directly benefit from cryptocurrency appreciation. The sale of mining rigs and accessories involves the commercialization of its proprietary SEALMINER mining rigs to third-party customers. Cloud hash rate services entail selling proprietary hash rate to customers through subscription plans at fixed prices, with mining income sharing arrangements. Hosting services offer one-stop mining rig hosting solutions, including deployment, maintenance, and management, under General Hosting, Membership Hosting, and Cloud Hosting options. The AI infrastructure and AI cloud business provides advanced AI cloud capabilities, HPC services, and colocation services to customers with high AI and computing demands. The company's self-mining, hosting, and cloud hash rate businesses are supported by a self-developed integrated intelligent software platform designed to enhance operational efficiency.

For the fiscal year ended December 31, 2025, Bitdeer Technologies Group reported total net revenue of US$620.3 million ¹. The company achieved a net profit of US$65.6 million ² for the year ended December 31, 2025, a significant improvement from net losses of US$599.2 million ³ in 2024 and US$56.7 million ⁴ in 2023. Gross profit for 2025 was US$60.992 million ⁵. Operating income for 2025 was US$159.720 million ⁶. Diluted EPS is not explicitly provided in the filing. Cash and cash equivalents stood at US$149.4 million ⁷ as of December 31, 2025, while total borrowings were approximately US$1.0 billion ⁸. Free cash flow and net debt figures are not explicitly provided.

Comparing the fiscal years 2024 and 2025, total revenue increased by 77.3% ⁹ from US$349.8 million ¹⁰ in 2024 to US$620.3 million ¹¹ in 2025. This growth was primarily driven by a 142.8% ¹² increase in self-mining revenue, from US$163.1 million ¹³ in 2024 to US$396.0 million ¹⁴ in 2025, and a substantial increase in revenue from the sale of mining rigs and accessories, which grew from US$0.6 million ¹⁵ in 2024 to US$108.3 million ¹⁶ in 2025, making it the second largest revenue source at 17.5% ¹⁷ of total revenue. Conversely, cloud hash rate revenue decreased by 94.7% ¹⁸ from US$39.8 million ¹⁹ in 2024 to US$2.1 million ²⁰ in 2025, and General Hosting revenue decreased by 48.2% ²¹ from US$67.6 million ²² in 2024 to US$35.0 million ²³ in 2025. AI cloud services revenue increased by 96.2% ²⁴ from US$3.5 million ²⁵ in 2024 to US$6.8 million ²⁶ in 2025. Cost of revenue increased by 97.4% ²⁷ from US$283.4 million ²⁸ in 2024 to US$559.3 million ²⁹ in 2025, primarily due to higher electricity costs and increased depreciation from new mining rig deployments. Gross profit decreased from US$66.4 million ³⁰ in 2024 to US$60.992 million ³¹ in 2025. Operating expenses saw significant increases in research and development, which doubled from US$76.9 million ³² in 2024 to US$153.9 million ³³ in 2025, and general and administrative expenses, which rose by 31.2% ³⁴ from US$64.3 million ³⁵ in 2024 to US$84.4 million ³⁶ in 2025.

During the reported period, Bitdeer made several significant operational developments. The company initiated mass production and deployment of its proprietary SEALMINER A2 and A2 Pro series mining rigs in 2025, and launched the SEALMINER A3 series in the second half of 2025, with the SEALMINER A4 series launched in April 2026. The company also expanded its AI infrastructure and AI cloud business, deploying NVIDIA DGX SuperPOD H100, H200, B200, and GB200 NVL72 systems and initiating the conversion of several existing mining datacenter sites in Tydal, Norway, Knoxville, Tennessee, and Wenatchee, Washington, for AI cloud and colocation use. The company acquired 100% of the equity interest in Troll Housing AS and Tydal Data Center AS (Norway Acquisition) on April 15, 2024, and 100% of FreeChain Inc. (FreeChain Acquisition) on September 13, 2024. In April 2025, Bitdeer signed a sale and purchase agreement and a turnkey agreement for the acquisition and construction of a datacenter in the Oromia region of Ethiopia for US$7.5 million ³⁷, with 50 MW ³⁸ energized as of March 31, 2026. The company also acquired a 101 MW ³⁹ site in Fox Creek, Alberta, Canada, on February 3, 2025, for US$21.7 million ⁴⁰. In November 2025, a fire damaged approximately 26 MW ⁴¹ of capacity at the Massillon, Ohio site, with planned energization delayed to the end of the third quarter of 2026.

The company expects to continue increasing its hash rate through 2026 and beyond through conversion of existing hosting capacity, executing on pipeline capacity, and pursuing expansion opportunities on a global scale. As of March 31, 2026, Bitdeer possessed an aggregate pipeline capacity of 1,259.5 MW ⁴² in the United States, Canada, and Malaysia. The company is converting a significant proportion of its existing global datacenter capacity to dedicated AI cloud and colocation use. The AI infrastructure and AI cloud business is expected to continue to expand, on both a nominal basis and as a percentage of the overall business throughout 2026 and the medium term.

A major growth area for Bitdeer is the expansion of its AI infrastructure and AI cloud business. The company is converting existing mining datacenter capacity for AI and colocation use and constructing new datacenter sites globally. The Tydal, Norway facilities (50 MW ⁴³ and 175 MW ⁴⁴) are being converted for colocation use, with completion targeted around the end of 2026. The Knoxville, Tennessee datacenter (86 MW ⁴⁵) is being converted for AI cloud use in two phases, with Phase 1 (37 MW ⁴⁶) targeted for completion by the fourth quarter of 2026 and Phase 2 (49 MW ⁴⁷) targeted for the first quarter of 2027. The Wenatchee, Washington datacenter (13 MW ⁴⁸) is also being converted for AI cloud use, with dismantling of the crypto mining datacenter starting in March 2026 and completion targeted for the fourth quarter of 2026. An additional 9.5 MW ⁴⁹ pipeline capacity in Cyberjaya, Malaysia, is expected to be energized in the fourth quarter of 2026 for AI cloud services. The company has deployed 2,128 GPUs ⁵⁰ as of March 31, 2026, with a utilization rate of approximately 94% ⁵¹, and expects to continue expanding its GPU fleet to meet strong demand.

Another significant growth vector is the continued development and commercialization of its proprietary SEALMINER mining rigs. The company launched the SEALMINER A4 series in April 2026, which integrates SEAL04 chips and achieves power efficiency as low as 9.45 J/TH ⁵². Beyond Bitcoin, the SEALMINER DL1 Air was launched in March 2026 for Litecoin and Dogecoin mining, achieving 149 J/GH ⁵³ power efficiency and a hash rate of 25 GH/s ⁵⁴. The company expects to further reduce its average energy consumption as it commences mass production and deployment of the SEALMINER A4 series.

Operationally, Bitdeer expects to further reduce its average mining energy consumption from 17.9 J/TH ⁵⁵ as of December 31, 2025, with the deployment of the SEALMINER A4 series. The ratio of carbon-free power supply, which was approximately 78% ⁵⁶ as of December 31, 2025, is expected to remain around 64% ⁵⁷ upon completing the construction of all datacenters in the pipeline. The Massillon, Ohio datacenter is expected to have an additional approximately 74 MW ⁵⁸ energized in phases during the second quarter of 2026, and approximately 26 MW ⁵⁹ in fire-damaged buildings rebuilt and energized by the end of the third quarter of 2026. The total reconstruction cost for the Massillon site is anticipated to be substantially recovered through insurance coverage.

Regarding capital allocation, Bitdeer expects to opportunistically access sources of capital, including proceeds from the issuance of convertible notes, Class A ordinary shares, and borrowing arrangements, to meet current and anticipated capital expenditure requirements. In February 2026, the company issued US$375.0 million ⁶⁰ in aggregate principal amount of 5.00% Convertible Senior Notes due 2032. In the same month, it completed a registered direct offering of 5,503,030 ⁶¹ Class A ordinary shares at a price of US$7.94 ⁶² per share, using the net proceeds, along with a portion of the February 2026 Convertible Notes proceeds, to repurchase US$135.0 million ⁶³ aggregate principal amount of the November 2024 Convertible Notes. The company also entered into a loan agreement with BIT Group in February 2026, borrowing 800 Bitcoin ⁶⁴, which was subsequently amended to increase the facility to 3,000 Bitcoin ⁶⁵ and 6,000 Bitcoin ⁶⁶ in February and March 2026, respectively. As of the date of the annual report, US$400.0 million ⁶⁷ had been drawn down under the BIT Assets Collateralized Loan, and an aggregate of US$300.0 million ⁶⁸ had been drawn down under additional similar facilities. The company also paid approximately US$6.4 million ⁶⁹ in total premium for put option transactions under the BIT Structured Product Agreement.

The company explicitly flagged several structural headwinds and execution risks. These include the inherent volatility of Bitcoin price, which directly impacts self-mining profitability and demand for mining-related services. Delays in datacenter expansion or conversion, particularly for AI datacenters, and significant cost overruns could materially affect the business. The capital-intensive nature of both mining and AI infrastructure businesses means the company may need additional capital, which may not be obtainable on favorable terms or at all. Maintaining a competitive position is challenging due to increases in total network hash rate and intense competition in the cryptocurrency mining, AI infrastructure, and AI cloud markets. The company's reliance on a limited number of third-party suppliers for electricity, foundry capacity for ASICs, and GPUs for AI infrastructure poses supply chain risks. Rapid technological change and the inherent uncertainty of R&D efforts could render existing products obsolete. The early stage of the AI infrastructure and AI cloud business, coupled with limited experience in this area, makes it difficult to evaluate future prospects and could lead to reputational harm or liability from AI development and use.

Geographic, regulatory, and macro factors identified as constraints include the highly evolving regulatory landscape for both cryptocurrency and AI industries, which could lead to increased compliance costs, restrictions on operations, or legal liabilities. The energy-intensive nature of operations may restrict geographic locations, give rise to community opposition, and result in environmental taxes or penalties. Geopolitical risks and changes in international trade policies, including sanctions and export controls, could negatively affect business activities and expansion plans. The company's interactions with a blockchain may inadvertently expose it to specially designated nationals (SDN) or blocked persons. The potential for cryptocurrencies to be deemed securities could trigger additional regulatory burdens.

Bitdeer Technologies Group faces material risks including significant impact from Bitcoin price fluctuation, as evidenced by a decline of more than 50% ⁷⁰ from its October 2025 high to its February 2026 low, driven by macroeconomic uncertainty and regulatory shifts. Delays in datacenter expansion or conversion, such as the Massillon, Ohio site where approximately 26 MW ⁷¹ of capacity was damaged by fire, delaying energization to the end of the third quarter of 2026, pose significant operational risks. The business is capital intensive, with prepayments to suppliers amounting to US$667.5 million ⁷² as of December 31, 2025, exposing the company to counterparty risk and potential liquidity issues. Intense competition from larger, better-resourced players in cryptocurrency mining and AI infrastructure, including hyperscale cloud providers, could lead to price reductions and market share loss. The highly evolving regulatory landscape for both cryptocurrency and AI, including proposals like a phased 30% ⁷³ excise tax on electricity used by digital asset miners in the U.S. and potential moratoria on AI datacenter construction, could increase costs and restrict operations. Geopolitical risks, such as trade restrictions and export controls on critical components like GPUs, could disrupt supply chains. The company is exposed to concentrated counterparty risk with the BIT Group, a related party, for financing arrangements, including a BTC Collateralized Loan of up to US$400.0 million ⁷⁴ and additional facilities totaling US$300.0 million ⁷⁵, where a default could materially affect financial condition. Cybersecurity threats, particularly to AI infrastructure hosting sensitive customer data, could lead to significant commercial harm, regulatory scrutiny, or legal liability.

Management's message to shareholders emphasizes a strategic pivot towards diversifying revenue streams and building AI computational infrastructure while maintaining a leadership position in Bitcoin mining. They highlight the successful launch and deployment of proprietary SEALMINER mining rigs, such as the SEALMINER A4 series with power efficiency as low as 9.45 J/TH ⁷⁶, as integral to their vertical integration strategy and a means to diversify revenue. A key strategic priority is the rapid expansion of the AI infrastructure and AI cloud business, including the conversion of existing mining datacenters and the construction of new sites, with an aggregate electrical capacity expected to reach approximately 3,003.5 MW ⁷⁷. Management also stresses the importance of securing low electricity costs, achieving an average of approximately US$45/MWh ⁷⁸ for 2025, and increasing the ratio of carbon-free power supply, which reached approximately 78% ⁷⁹ as of December 31, 2025. They acknowledge the capital-intensive nature of their growth plans and indicate an opportunistic approach to financing, including recent issuances of US$375.0 million ⁸⁰ in convertible senior notes and a registered direct offering of 5,503,030 ⁸¹ Class A ordinary shares at US$7.94 ⁸² per share in February 2026.